Mortgage fraud task force launched U.S. attorney issues subpoenas to 11 banks over MBS

Marketwatch.com ^ | 01/27/2012 | Ronald D. Orol

[Neidermeyer]

WASHINGTON (MarketWatch) — More than three years after the height of the financial crisis, federal and state regulators on Friday launched a mortgage fraud task force to investigate the pooling and securitization of mortgage securities by big banks.

Regulators said the new task force will not interfere with efforts to reach a settlement with a group of five financial institutions over questionable foreclosure practices.

Specifically, the Justice Department, along with other state and federal regulators, announced that the new working group will consist of at least 55 Justice Department attorneys from around the country. The team joins existing state attorneys-general and federal investigators at the Securities and Exchange Commission already examining the conduct by big banks.

U.S. Attorney General Eric Holder said that as part of the effort the Justice Department recently issued civil subpoenas focusing on residential mortgage-backed securities to 11 financial institutions, adding more will come.

[Neidermeyer]

I don't think this is a shakedown by Obama for campaign funds ... he has enough of that already ... Wall Street owns the government ,, so much so that Jamie Dimon threatened Obama with derailing the AG settlement talks after he announced investigations in the State of the Union...

[King_Corey]

Paging Linda Green
Linda Green please pickup the white courtesy phone
Linda Green

[jmax]

>>> "....will consist of at least 55 Justice Department attorneys from around the country." <<<<<

B-u-t, not a single Holder Justice attorney will appear before Issa's Fast and Furious committee without taking the fifth.

[liberalh8ter]

So, they're assembling a mortgage fraud task force to investigate 3 years after the crimes? I predict 2 years of investigations and then, viola - hit the statute of limitations wall.

[TheOldLady]

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[Neidermeyer]

Hell ,, lets page Tonya Hopkins and Harold Nord III while we’re at it ... I’m going to stuff a re-opened case up AHMSI/WF/Wilbur Ross’s behind with those frauds.

[Neidermeyer]

Other cases march on ... Pino is in the home stretch here in FL ...

http://www.floridasupremecourt.org/pub_info/summaries/briefs/11/11-697/index.html

Pam Bondi must be apologizing non-stop to the banksterz for not getting this case killed.

[upchuck]

I sincerely hope they quit screwing around with this and some fat cat bankers do some hard time.

I’m convinced that “fines” and “settlements” do little to change habits. But prison time will.

[liberalh8ter]

Yep, she missed that one.

[Jacquerie]

Sounds good to me if Chris Dodd and Bawney Fwank are their cellmates.

No less than four Congressional committees and hundreds of very smart and extremely well paid bureaucrats had cognizance over our banking/finance industry.

I'm not aware of any significant ailment facing our country that didn't begin with a democrat pol.

[LomanBill]

Any defunct Chicago banks on the list?

 

Follow the....

http://www.campaignmoney.com/finance.asp?type=in&cycle=08&criteria=pritzker&fname=penny

 

Billionaire business mogul Penny Pritzker is a member of one of America’s richest families and was the Finance Chair for the presidential campaign of Barack Obama.  It was Pritzker that led the prolific, and illegal, fundraising that helped power Barack Obama’s presidential campaign.  She was the chair of Chicago-based Superior Bank’s board for five years.  Pritzker was into subprime lending before it became all the rage starting in around 2000.  Prtizker's chairmanship was to concentrate on sub prime lending, principally on home mortgages, but for a while in subprime auto lending, too, after the Pritzkers' bank acquired its wholesale mortgage organization division, Alliance Funding, in December 1992. Back then they called it "predatory lending." Superior Bank went belly up in 2001 with over $1 billion in insured and uninsured deposits; 1,406 depositors lost much of their life savings.  This collapse came amid harsh criticism of how Superior’s owners promoted sub-prime home mortgages. On Nov. 1 [2002] the Federal Deposit Insurance Corp. pointed the finger at Ernst & Young, Superior’s auditor, in a fraud suit filed in federal court here.  But that action came two months after a group of Superior depositors accused the bank’s owners and directors, including two members of the Pritzker family, of racketeering....

[snip]

...Pritzker is chairman of Classic Residence by Hyatt, luxury senior living communities in 11 states; chairman of The Parking Spot, which owns and operates off-airport parking facilities in nine cities; chairman of the credit data company TransUnion and chairman of Pritzker Realty.  She also sits on the board of Global Hyatt and plays a role in numerous non-profit groups, including serving as chairman of the Olympic village portion of Chicago’s bid to win the 2016 Summer Games. 

 

http://www.theobamafile.com/_associates/PennyPritzker.htm

 

 

 

Nudge nudge nudge...

 

[The Antiyuppie]

“I’m convinced that “fines” and “settlements” do little to change habits. But prison time will.”

That’s the problem, isn’t it? Fines and settlements are nothing more than additional taxes on the customers and stockholders.

[upchuck]

Fines and settlements are nothing more than additional taxes on the customers and stockholders.

Precisely!

[Neidermeyer]

I sincerely hope they quit screwing around with this and some fat cat bankers do some hard time.
***********************************************
Not likely , this appears to be theater ... not enough agents assigned to it ..